Granite Construction Reports $59 Million Loss for 2010

Granite Construction reported a full-year loss of $59 million, including a $107 million restructuring charge related to cutting 13% of the workforce and selling the real estate segment. Even without the charge, the company recorded a slight negative in operating income, reflecting an 800-basis-point decline in gross margins related to the construction and large construction segments. Heavy competition has taken a bite out of earnings, and we expect the backlog booked in 2010 to carry a similar margin picture, making the company start 2011 with a rather distressing operating profile. (More at MorningStar.com . . . )